World demand to rise 6.9% annually through 2018

Global demand for filters is projected to increase 6.9 percent annually to
$79.9 billion in 2018. This growth rate is an acceleration from the gains of
the 2008- 2013 period, reflecting in part the relatively low 2013 bases for a
number of developed countries. The global recession of 2009 restrained
manufacturing activity and capital investments, but economic recovery in
several key markets through 2018 will boost gains.

Developing countries to see most rapid growth in demand

Countries such as China, Indonesia, India, Turkey, and others with large,
developing industrial bases and nascent regulatory schemes are expected to see
the fastest growth. Filter sales in developing areas will be driven by rising
per capita incomes, which will bolster key filter markets such as motor
vehicles, motorcycles and consumer applications. Rising environmental
standards and increased attention paid to food and beverage safety
regulations, along with better enforcement, will also require additional
investment in filters.

Economic development and population growth will result in the increased need
to tap poor quality water resources in a number of regions. In addition,
rising investment in modernizing water, wastewater, and power generation
infrastructure will benefit filter demand, particularly in developing
economies. However, in many of the least developed countries, especially in
Africa and parts of Asia, growth will be limited by lack of adequate funding
for major infrastructure projects, and local corruption that impedes progress.

In 2013, the US was the largest national market with 19 percent of global
sales, followed closely by China with 18 percent of global sales. Japan and
Germany, each with approximately six percent of all global sales, are also
leading national markets for filters. China is projected to post the largest
growth of any national market, with demand growing 12 percent annually between
2013 and 2018.

Manufacturing to be fastest growing market for filters

Manufacturing is expected to be the fastest growing market for filters through
2018, benefiting from an improvement in manufacturing activity coupled with
more stringent pollution control regulations in a number of nations. The
utilities market will post above average gains, stimulated by rising global
demand for water and electric utility services, which will boost construction
of new power plants, water and wastewater treatment facilities, and waste
incinerators.

Transportation equipment will remain the largest single market for filters in
2018. This market will also register solid gains, supported by continued
growth in the overall number of motor vehicles in use and continued growth in
motorcycle ownership.

Sales to the much smaller consumer market will be fueled by concerns about the
quality of indoor air, as well as by efforts to improve drinking water
quality, particularly in rural and semi-rural areas where municipal supplies
are not readily available. Rising per capita incomes will also boost gains by
helping make filters more affordable.

Study coverage

Details on these and other findings are contained in the Freedonia industry
study, World Filters. This report presents historical demand data for
2003, 2008 and 2013, as well as forecasts for 2018 and 2023 by product,
market, worldwide region and for 23 countries. In addition, the study
considers key market environment factors, assesses the industry structure,
evaluates company market shares and profiles 42 global industry participants
such as Donaldson, DENSO, MANN+HUMMEL, MAHLE International and Parker-Hannifin.